HANOI: Around 80 per cent of surveyed local enterprises planned to expand their production and business in 2016 due to prospects of international integration. This was revealed in the FAST 500 Ranking Lists 2016, drawn up annually since 2011 which was announced by the Viet Nam Report and online newspaper VietnamNet yesterday.
Accordingly, over 22 per cent of the surveyed businesses would maintain their current operation while only 1.6 per cent planned to narrow their scale. This has been considered a vital development trend as Viet Nam’s economy witnesses a new growth phase after entry into Trans-Pacific Partnership Agreement (TPP), and the ASEAN Economic Community (AEC), it said.
The survey also revealed that businesses would have three priorities including turnover and profit growth, cost reduction and introducing new products and services.
In addition, the TPP which will take effect in 2018 would offer opportunities for the economy in the future. The investment is expected to be higher while tariff barriers would be removed, creating more transparency. These factors are forecast to promote development, of businesses, especially small-and-medium sized enterprises.
However, the companies in the list should be careful while choosing their business plans, improving productivity, and quality to avoid hot growth trap, it said. The reality showed that several firms were in a hurry to increase investment and expand markets while they had not predicted the difficulties ahead. The businesses in the list also expected a reduction in personal income tax to better support their operations.
